British Pound
While UK business optimism is at a 2 year high, UK consumer confidence fell in February for the first time since October. However GBP had a better week last week and the Pound performed well.
GBP/EUR 1.1715
Germany
The word most associated with the German political establishment for many years has been consensus. Until recently that is. While the process may have taken time Germany’s successive coalitions externally at least appeared to act cohesively. Whatever the strains within those coalitions, consensus was reached. The present German cabinet led by Chancellor Scholz is composed of his party the Social Democrats, the Alliance90/The Greens and the Free Democrat Party. The problem is that outside the cabinet the public have very different allegiances and the FDP is now much more powerful which means that recently there have been a number of instances where Germany has supported EU wide policy decisions but then had to row back on them having failed to garner the requisite support within the Coalition. This is making it hard for the EU to govern given the disproportionate number of votes that Germany has.
EUR/USD 1.0820
Gold
Gold bugs and Goldman Sachs were out in force over the weekend talking up the prospects for gold citing safe haven buying by the world’s central banks and an environment of falling interest rates as being the prime reasons. The forecast is for it to reach USD 2175 in the next 12 months.
Gold USD 2035
Cost of Living
The announcement that a Mayfair London restaurant, Nusr-et had taken a GBP 1450 Tomahawk Steak wrapped in Gold Leaf named the Golden Tomahawk off the menu citing cost of living issues, prompted reports of other absurdly priced dishes: a so called 777 Burger in Las Vegas costs you guessed it USD 777 and is a combo of Wagyu Beef and Maine Lobster. Next up is the Golden Boy Burger which you can find in the Netherlands and which costs EUR 5,000 and is also Wagyu beef plus Beluga caviar, King Crab Iberian Ham and white truffle. But for sheer opulence a Taco named the Grand Velas Taco can be found in Los Cabo’s, Mexico and comprises Kobe beef, Beluga caviar, Black Truffle Brie and Gold Flake taco shell which is topped with a salsa that includes Tequila and Civet Coffee Beans. The cost? Priced at USD 25, 000 presumably because the local Mexican currency cost of MXP 428,000 looks even more obscene than the Grand Velas Taco sounds.
GBP/USD 1.2680
Thriller
It was this day that Michael Jackson’s phenomenal album Thriller went to Number One where it stayed for 37 weeks. Sales are estimated to be between “65 and 110 million copies”- clearly counting album sales was an imprecise science 40 years ago. Equally the commercial success of thriller is not in any doubt.
It’s close to midnight
Something evil’s lurking in the dark
Under the moonlight
You see a sight that almost stops your heart
You try to scream
But terror takes the sound before you make it
You start to freeze
As horror looks you right between your eyes
You’re paralyzed
‘Cause this is thriller
Thriller night
And no one’s gonna save you
From the beast about to strike
You know it’s thriller
Thriller night
You’re fighting for your life
Inside a killer
Thriller tonight
I’m gonna thrill you tonight
You hear the door slam
And realize there’s nowhere left to run
You feel the cold hand
And wonder if you’ll ever see the sun
You close your eyes
And hope that this is just imagination
Girl, but all the while
You hear a creature creeping up behind
You’re out of time
‘Cause this is thriller
Thriller night
And no one’s gonna save you
From the beast about to strike
You know it’s thriller
Thriller night
You’re fighting for your life
Inside a killer
Thriller tonight
I’m gonna thrill you tonight…
Discussion and Analysis by Humphrey Percy, Chairman and Founder
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